Level 2

ABC Corp, an S corp with one "owner" has a stock value of $50,000 on  7/1/2020.

"owner" sells stock for $150,000 on 7/2/2020 receiving $50,000 via check from new owner and will be paid the remaining $100,000 via a 3 year note.

I think I'd credit note payable for $100,000 and paid-in capital from new owner for $50,000, but would I debit capital stock $150,000?

 

0 Cheers